Drought
A quick planting pace and the possible return of El Nino meant traders have not been focusing on any weather issues. However, with drought continuing to expand, a U.S. weather market might be back in play.
The signs of El Niño grew even strong this month, and as the weather event looks to make its grand return, significant weather changes could be on deck for U.S. farmers this year.
Seven U.S. states along the drought-starved Colorado River have reached a deal with the Biden administration to conserve water in a “historic consensus” to prevent supply problems for big cities as well as farmers.
The 2023 Wheat Quality Council’s Wheat Tour across Kansas found low yields and higher abandonment than what USDA currently has penciled in with one economist on tour warning abandonment could climb even higher.
USDA’s pasture and range conditions shows 33% is rated good/excellent and 37% is poor/very poor. While the picture is improved from last year, a deeper dive shows one state is worse than 2013.
Farmers made significant headway in planting progress last week. USDA shows nearly half of the country’s corn crop is planted and 35% of the soybean crop is now in the ground. There are several states setting records.
Farmers in the Southern Plains are finally starting to see much-needed moisture hit their fields. It may be too late for winter wheat, but it’s a hopeful sign for those needing the rain to even plant summer crops.
The Corn Belt will see a cooler weather pattern set in, and parts of the parched Plains will see higher chances of rain during the next couple of weeks, according to Eric Snodgrass of Nutrien Ag Solutions.
Dry conditions spurred by La Nina weighed on areas of the Corn Belt in 2022. As La Nina fades, and El Nino starts to make a return, meteorologists say the weather shift could also signal better crop production in 2023.
The updated Seasonal Drought Outlook for the U.S. is painting a grim picture for many drought-plagued areas of the Plains, but forecasters also expect drought to improve in parts of Nebraska and Iowa.